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My c:\ also has the phantom account for anti-theft which has no permissions set except 'special'. Actually, maybe around the same time this was happening I saw some weirdly named accounts appearing on the permissions lists, I didn't know what they were so I deleted them. I'm now thinking they were tied to anti-theft. Maybe deleting those somehow messed things up. Though my 2nd PC didn't delete any of those accounts and it also had/has the issue. (thanks for taking the time to assist me)
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I'm unsure what exactly it's trying to execute when Steam is running, but here's an easier case to repo with ESET itself. I turn on Advanced Logging, then stop it and it pops up the message in the bottom right. Upon clicking this folder the error is shown in the image. So if someone can tell me what that link is doing I can easily figure out the issue (I hope).
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If I launch a game like 'Eco' the main menu has a discord link, opening the game through steam and click that results in "this app can't run on your pc" with a command prompt behind it that after you click 'close' flashes 'Access is denied' before closing. If I launch the game as standalone without steam it works just fine. The issue is across multiple games. I've already tried reinstalling steam but it didn't change anything. This is definitely ESET causing the issue, but I'm unaware of how to fix it (I believe it to be the anti-theft protection causing it).